Intel, Qualcomm Say Earthquake in Japan Won’t Slow Chip Output

March 16 (Bloomberg) -- Intel Corp., the world’s largest
chipmaker, and Qualcomm Inc., the biggest supplier of
semiconductors used in phones, said last week’s earthquake in
Japan won’t hurt production.

“We will keep our commitment to our customers,” said
Chuck Mulloy, a spokesman at Santa Clara, California-based
Intel. “Our general rule is that nothing is sole-sourced.”

The 9.0-magnitude earthquake and resulting tsunami damaged
factories and transportation, and power is still out at Japanese
producers of some key components and materials used in the
electronics industry. Analysts at Barclays Plc and UBS AG had
speculated that shutdowns at Mitsubishi Gas Co. would deprive
some chipmakers of a chemical resin used to package their
products, causing supply disruptions.

“Qualcomm has multiple, geographically diverse sources for
supply as well as production processes specifically designed to
enable us to mitigate disruptions in our supply chain,” the San
Diego-based company said today in a statement. “We do not
foresee any significant impact in our ability to supply product
to our customers due to the events in Japan.”

Intel fell 37 cents, or 1.9 percent, to $19.81 at 4 p.m.
New York time in Nasdaq Stock Market trading. Qualcomm declined
$2.50, or 4.7 percent, to $50.50.

Intel microprocessors run more than 80 percent of the
world’s personal computers. Qualcomm dominates the market for
the radio chips and processors that are the heart of mobile
phones.